Budget is a projection of expenditure to be incurred and revenues to be collected during a period usually given month for one person. The budget is an important tool to properly manage his income because if you do not plan your expenses you can not complete your end of the month that is to say, you may find yourself short of cash at month end with a hole to fill.

Anyone concerned about his future and that of his family needs to prepare its monthly budget, but we can always do but when it comes to respect it is another thing. How so? See this in four steps!

1. Establish your budget: It’s obvious if you do not have a budget, how can you respect it. He must know the exact amount of his disposable income (that is to say, the average after-tax contributions and others). It will estimate as closely as possible its expenditure for the period considered (the month);

2. Set a savings goal: It is important to save because there are unforeseen. You must set a reasonable savings goal as “to save 5% of my disposable income. You can say “Oh it can it can not be used to much” Quite the contrary. First, it allows you to meet your budget, do not waste your money, and have a fund to meet contingencies. Do not keep money at home because you will try to take something, but open a special account to deposit that amount every month. Remember “Little by little the bird builds its nest;

3. They consider their needs. To meet its budget must reflect their needs and not desires. Your needs are the positions of your budget you can not do without such as your food, rent, education for children, … Eliminate your desires. Ask yourself these questions: Is it necessary that I go to the movies twice a week? Gambling? cigarettes? … ..

4. Make a statement of your expenses: It may seem difficult but is crucial since you will soon see if deviations from the budget. Keep all receipts of your purchases and others to not unnecessarily increase your costs.

The budget staff is your first ally on the road to financial freedom, but it is useless to develop a budget complicated if you do not comply. If you use these few items you’ll be able to meet your budget, save and then you build up capital that you can use to make smart investment in you build your future and achieve financial success.